PITTSBURGH An Ontario metals recycler recently placed under temporary receivership has been put under full receivership, and its owner is now believed to be out of the country.
The businesses owned by Rantel Boparaiwhich include Scrapmen & Boparai Trading Co.earlier this month were put into temporary receivership under the Canadian Bankruptcy and Insolvency Act for defaulting on Canadian $17 million ($15.5 million) in loans (amm.com, Jan. 7), according to documents filed in the Ontario Superior Court of Justice.
The move came after the bank initiated an investigation into the companies affairs after it sought additional funds to expand.
During a routine review of the companys financial information, the bank learned that the company reported sales of C$64.6 million between January and September but only deposited C$7.6 million during this time, including just C$3,964 in September, according to the latest documents.
Since the businesses were placed into receivership, Boparai hasnt contacted the appointed legal counsel and the counsel has been unable to reach him. The receiver has been advised but unable to confirm that Boparai is now out of the country. A representative who went to Boparais residence since the initial filing was advised that he is no longer living there.
The court-appointed receivers update suggests that Boparai had been planning for some time to wind down and exit operations without informing the bank, and terminated employees before the bankruptcy proceedings were initiated by the court.